Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

My Specific question regards Q3 LIFO and FIFO because my excel template only includes 3 rows and 8 columns,so my instructor is not looking for

My Specific question regards Q3 LIFO and FIFO because my excel template only includes 3 rows and 8 columns,so my instructor is not looking for the entire worksheet just the total numbers? Am I missing something?

Original Question: The Warnerwood Company uses a perpetual inventory system. It entered the following purchases and sales transactions for March into the system:

Date

Activities

Units Acquired at Cost

Cost per Unit

Units Sold at Retail

Price per unit

March 1

Beginning inventory

100 units

$50

March 5

Purchase

400 units

$55

March 9

Sales

420

$85

March 18

Purchase

120 units

$60

March 25

Purchase

200 units

$62

March 29

Sales

160 units

$95

Totals

820 units

580 units

Instructions:

Show all of your work in an Excel spreadsheet for the following tasks:

Compute the number of units available for sale.

Compute the number of units in ending inventory.

Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, and (c) weighted average. (Round the average cost per unit to 2 decimal places.)

Compute the gross profit earned by the company for each of the three costing methods. (Round the average cost per unit to 2 decimal places.)

Excel Spreadsheet attachment (this form needs to be filled out) :

PART 3

Warnerwood Company

Column->

A

B

C

D

E

F

G

Date

Activities

# Units Buy

Cost/unit

#Units Sold

Price/unit

Cost GAS

Sales

1-Mar

BI

5-Mar

TI

9-Mar

TO

18-Mar

TI

25-Mar

TI

29-Mar

TO

TOTAL

Q1. Units in Available for Sales is BI + TI (Column B)=

Units (BI + TI) =

Q2. BI + TI - TO = EI=

820

minus

580

equals

240

Q3. FIFO

Q3. LIFO

Q3. Weighted Average

Weighted cost/unit=

Cost EI=

Q.4

Sales

COGS/Method

Gross Profit

Q4. FIFO

Q4. LIFO

Q4. WtAvg

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Global Financial Accounting And Reporting Principles And Analysis

Authors: Peter Walton, Walter Aerts

1st Edition

1844802655, 9781844802654

More Books

Students also viewed these Accounting questions

Question

2. List the links included on the Employees Start a Task list.

Answered: 1 week ago

Question

How might a countrys culture be a barrier to global business?

Answered: 1 week ago